Its 100% online mobile signup guides users through each step with the help of a virtual chatbot enabling a tailor-made policy and adjustable coverage (legal and liability costs, property and valuables, loss of use, medical care for others)

The company takes a flat fee of 20% out of users’ insurance premiums (its only fee), then lets the user choose a local philanthropic initiative

Users’ premiums are pooled by philanthropic initiative, which serves as a fund for any claims. At the end of the year, any leftover money (the underwriting profit) is then sent to the charity

Lemonade esteems that users are less likely to make fraudulent claims if their money is going to a good cause of their choice

Under New York state law, Lemonade can not return remaining money to users, instead choosing to donate to local causes